What we know about Lagos State Finances About BudgIT
BudgIT is a civic organisation driven to make the Nigerian budget and public data more understandable and accessible across every literacy span. BudgIT’s innovation within the public circle comes with a creative use of government data by either presenting these in simple tweets, interactive formats or infographic displays. Our primary goal is to use creative technology to intersect civic engagement and institutional reform.
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Research Team: Atiku Samuel, Ayomide Faleye, Olaniyi Olaleye, Thaddeus Jolayemi, Oyebola Agunloye, Ama Bassey Henry Omokhaye
Creative Development: Segun Adeniyi and Folahan Johnson
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Address: 55, Moleye Street, Sabo, Yaba, Lagos, Nigeria.
© 2018
Disclaimer: This document has been produced by BudgIT to provide information on budgets and public data issues. BudgIT hereby certifies that all the views expressed in this document accurately reflect our analytical views that we believe are reliable and fact- based.
Whilst reasonable care has been taken in preparing this document, no responsibility or liability is accepted for errors or for any views expressed herein by BudgIT for actions taken as a result of information provided in this Report. Overview Land Mass Water Area History 2797.72 Sq Km 779.56 Sq Km
Lagos State was created by virtue of the State 600,000 per annum, with a density of (Creation and Transitional Provisions) Decree approximately 4,193 persons per sq. km. In the No. 14 of 1967 on 27 May 1967, which urban areas of the Lagos metropolis, the restructured Nigeria into 12 States. Prior to average population density is over 20,000 t h i s , L a g o s M u n i c i p a l i t y h a d b e e n people per sq. km. administered by the federal government (FG), through the Federal Ministry of Lagos Affairs Current demographic trend analysis reveals as the regional authority, while the Lagos City that Lagos’ population growth rate of 8% has Council governed the City of Lagos. resulted in its harbouring 36.8% (an estimated 49.8 million) of Nigeria’s 150 million urban The metropolitan areas (previously referred to population (World Bank, 1996). as Colony Provinces) of Ikeja, Agege, Mushin, Ikorodu, Epe and Badagry were administered The implication is that whereas Nigeria’s by the then Western Region. The State population growth is approximately 4-5% and became an administrative entity on 11 April stands globally at 2%, Lagos’ population is 1968, with Lagos Island serving the dual role of growing ten times faster than that of New State and Federal Capital. York and Los Angeles (USA), with grave implications for urban sustainability1. However, in 1976, Lagos Island ceased to be the capital; Ikeja assumed that role. The seat of the federal government was subsequently Estimated Population Figures relocated to Abuja on 12 December 1991, and Lagos also ceased to be Nigeria’s political 2012 11,042,686 capital.
Lagos nevertheless remains Nigeria’s 2013 11,401,767 economic, manufacturing, financial and commercial hub, also ranking among Africa’s top cities along the same yardsticks. 2014 11,772,524
POPULATION 2015 12,155,337 According to the 2006 census conducted by the National Population Commission (NPC), 2016 12,550,598 Lagos has a population of over nine million, of a national estimate of 150 million. Source: Nigerian Bureau of Statistics (NBS), Central Bank of Nigeria (CBN) The population growth has a rate of about
4 Motor Vehicles Registration Statistics
Motor Cycles 2010 105,147
2015 25,958
Motor Vehicles 2010 936,604
2015 833,957
Number of Boats by Ownership & Passengers (2015)
Boats Passengers 136 1,403,100
Number of Ferries by Ownership & Passengers (2015)
Ferries Passengers 167 25,676,923
Source: Lagos State Government
5 Finances
Lagos is a State every other in Nigeria may envy, considering the size of its tax revenue relative to its centrally-collected revenue. Compared to many of its peers, Lagos is highly industrialised, Lagos Telecommunications being the nation’s economic capital and home to Statistics as at Q4 2017 a booming port system. The State government relies on statutory allocations to undertake projects and implement programmes, as highlighted in its budget. Statutory allocations make up about 21.67% of Total revenue for the Active Voice state government, while the balance is 19,417,181 generated internally. The economic structure of Lagos state gives it a considerable advantage, in terms of internally- 13.39% generated revenue (IGR) uptake. In 2016, Lagos of total active voice accounted for approximately 37% of Total IGR lines in Nigeria collected by all States, reinforcing the optimal financial position Lagos enjoys.
It is important to note at this point that more Active details on Lagos’ financial statements are notoriously kept opaque, with scant useful Internet Lines information. 13,631,562 The State does not publish its detailed budget, budget implementation reports, audited statements and other critical documents 13.81% needed for holistic, independent assessment. of total active internet lines in Nigeria The low level of transparency in Lagos’ finances is reflected in the quality of service and abysmal Source: NCC, NBS range of infrastructure in the state; the paradox of Lagos is its reality as a place where rubbish dumps grow on streets, in tandem with six-figure skyscrapers. Despite its huge revenue uptake,
1https://www.fmdqotc.com/wp-content/uploads/2017/07/LASG-Series-2-Bond-Prospectus.pdf 2https://www.cbn.gov.ng/Out/2017/SD/eCopy%20of%202016%20Statistical%20Bulletin_Real%20Sector%20 Statistics_Final.xlsx (Tab C5.2) 3Telecoms Data: Active Voice and Internet per State, Porting and Tariff Information (Q4 2017) - ppg 59 http://www.nigerianstat.gov.ng/download/729
4Telecoms Data: Active Voice and Internet per State, Porting and Tariff Information (Q4 2017) - ppg 60
6 the condition of Lagos’ road and drainage disconcerting. Furthermore, the Overhead systems are overwhelmingly sub-optimal. costs of running the office of the governor of Lagos is still some way from achieving crucial Lagos in 2017 was N6bn, a figure significantly schemes, including a light rail system, and higher than the N1.32bn allocated for lagging behind in terms of road infrastructure, Overhead costs for maintaining the office of drainage construction and the provision of fire the President of Nigeria, in the 2018 budget. stations. It is therefore a matter of legal and moral The condition of schools and hospitals, when principle for Lagos state to open up its books juxtaposed with the State’s revenue is just as to public scrutiny.
http://www.nigerianstat.gov.ng/download/729 5http://www.budgetoffice.gov.ng/index.php/2017-approved-budget?task=document.viewdoc&id=647
7 Lagos 2018 Budget Fiscal Framework Fiscal Framework
Lagos’ 2018 spending plans suggest she may through Oke-Ira in Eti-Osa to Epe-Lekki be borrowing heavily through the year. The Expressway; the construction of an 8km southwestern Nigerian State is planning to Regional Road to serve as an alternative route spend approximately N1.046tn, with 66.8% (or to connect Victoria Garden City (VGC) with N699.082bn) going into Capital items, while Freedom Road in Lekki Phase 1; the the balance will be spent on Recurrent items, completion of the ongoing reconstruction of including the servicing of public debts, Oshodi International Airport Road into a 10- payment of salaries and emoluments of lane road and the construction of a Bus Rapid workers and other associated Overhead costs Transit (BRT) lane from Oshodi to Abule- Egba. At N1.046tn, Lagos’ expansionist spending plan for fiscal year 2018 is up 28.65%, from According to a sectoral breakdown of the 2017 levels of N813bn. Capital expenditure budget, General Public Services are projections in 2018 stand at N699.082bn, a rise earmarked to gulp N171.623bn, representing from N436.26bn in 2017. 16.41%; Public Order and Safety comes to N46.612bn (4.46%); Economic Affairs at What and how the State will spend the N473.87bn (45.3%); Environmental N1.046tn on is locked away from public debate Protection at N54.582bn (5.22%), while and assessment. Lagos is hoping for a Housing and Community Amenities got Revenue uptake of N897bn, which is N59.904bn (5.73%). significantly higher than 2017 projections of N642bn. Disaggregated information on the The Health sector got N92.676bn (8.86%); State’s revenue projections for 2018 has again Recreation, Culture and Religion got not being made public. N12.511bn (1.2%) Education was pegged at N126.302bn (12.07%), while Social Protection In 2017, Lagos’ budget was anchored on got N8.042bn (0.77%). Internally-generated Revenue projections of N450.87bn, Federal transfers of N166.54bn Under the budget, there are provisions for the and Capital receipts of N25.44bn. completion of five new Art Theatres; establishment of a Heritage Centre at the With revenue projected at N897bn and the former Federal Presidential State House 2018 spending plan built around N1.046tn, the recently handed over to the State deficit for Lagos is pegged at N149bn, which Government; a world class museum between will most likely be closed by borrowing, and the former Presidential Lodge and the State sales of government properties. Preliminary House, Marina; construction of four new information released to the public on the 2018 stadia in Igbogbo, Epe, Badagry and Ajeromi budget states that the projects therein include Ifelodun (Ajegunle) and completion of the the construction of the Agege Pen Cinema ongoing Epe and Badagry Marina projects. On flyover; construction of alternative routes
6https://www.premiumtimesng.com/regional/ssouth-west/257126-lagos-assembly-passes-n1-046-trillion-budget-2018.html
9 Housing, there are provisions that include the completion of projects, particularly those at Gbagada, Igbogbo, Iponri, Igando, Omole Phase I, Sangotedo and Ajara-Badagry under the Rent- to-Own policy.
However, the breakdown of the budget, and amounts voted for each project, along with total amounts spent in periods past remain unclear and unaccessible by the wider public.
2018 Lagos State Budget
Deficit
N149bn
Capital Expenditure
N699.08bn Budget Size
Revenue N897bn N1.046tn
N347.04bn
Recurrent Source: Lagos State Government Expenditure
10 Revenue A History of Lagos State Revenue Revenue
Lagos’ Revenue projection for the 2018 1998 N13.5bn financial year is set at N897bn, a 39.72% increase over 2017 estimates. 1999 N22.2bn
The State’s projected Revenue for 2016 was 2000 N27.1bn N542.9bn, while Actual Revenue for Lagos in 2015, 2014, 2013 and 2012 was N384.4bn, 2001 N39.8bn N408.1bn, N316.2bn and N310.4bn respectively. 2002 N41.8bn Cumulatively, Lagos’ Revenue between 1999 N52.3bn and 2006 was N419.4bn; the State collected a 2003 total of N2.44tn between 2007 and 2015. 2004 N62.8bn Currently, data on actual collections in 2016 2005 N79.7bn and 2017 remains unavailable. 2006 N93.7bn Composition of Lagos State Revenue 2007 N118.8bn based on 2015 Actual Receipt 2008 N179.3bn 8.66% 2009 N220.9bn N33.27bn Other 2010 N221.7bn Revenue
N74.08bn 2011 N281.1bn 19.27% Other N175.43bn Revenue PAYE (IGR) 2012 N310.4bn 45.64% 2013 N316.2bn
N82.9bn 2014 N408.1bn Federal 21.57% Transfers 2015 N384.4bn 2016 N542.9bn* N9.52bn N9.197bn Direct Road Tax 2.39% Assessment 2.48% 2017 N642bn* Source: Lagos State Government, OAGF 2018 N897bn*
Source: Lagos State Government, BudgIT Research *Budget Figures
12 Internally Generated Revenue Lagos’ Internally-generated Revenue (IGR), Lagos State officially notes that there are 12 when compared to most of its peers, is taxes and levies collectable by the relatively high. Her IGR as at the end of 2016 government, namely: Personal Income Tax, was N302.4bn, from 2015 levels of N276.6bn. Withholding Tax (from individuals only), Capital Previous financial reports from the Gains Tax (individuals only) and Stamp Duties government show that IGR amounted to on instruments executed by individuals. N219.2bn and N277.12bn in 2013 and 2014 respectively. Between 2007 and 2017, Lagos’ The State also collects tax on Pools Betting IGR came to N2.38tn. and Lotteries; Gaming and casino taxes; Road Taxes; Business premises registration fee; History: Internally Generated Development Levy (individuals only), Naming Revenue 1999-2017 of Streets registration in the State capital and Right of Occupancy fees on lands owned by the State Government in urban areas of the 1999 N14.6bn State. 2000 N11.6bn Other revenue sources include Market taxes 2001 N17.9bn and levies where the State Finance is involved 2002 N20.8bn in the construction of the market, as well as H o t e l O c c u p a n c y a n d R e s t a u r a n t 2003 N27.5bn Consumption Tax. 2004 N33.9bn 2005 N40.6bn 2006 N61.7bn 2007 N83.0bn Breakdown of Internally-Generated Revenue 2008 N129.6bn 2009 N178.5bn 2010 N173.4bn 19.27% N74.1bn Other Revenue 2011 N199.9bn N9.52bn N175.43bn 2012 N202.8bn Road Tax PAYE 45.64% 2013 N219.2bn 2.48% 2014 N277.1bn 2.39% 2015 N276.6bn N9.19bn 2016 N302.4bn Direct Assessment 2017 N341.0bn 2018 N680.1bn*
Source: Lagos State Government, NBS, BudgIT Research *Budget Figures
13 Personal Income Tax PAYE Direct Assessment
Pay As You Earn (PAYE) is a form of personal Direct Assessment may relate to a form of income tax that refers to tax deducted directly personal income tax used to assess tax for from the wages and salaries of employees self-employed individuals. With the self- operating in the formal sector. assessed tax scheme, a new taxpayer can assess him/herself, and pay the calculated Lagos’ total receipt under personal income tax amount. Direct assessment may also relate to (on incomes of individuals), which was those taxes imposed on businesses, especially N 1 9 0 . 6 6 b n i n 2 0 1 6 , a c c o u n t e d f o r (informal) by the State authorities, based on the approximately 63.3% of Total IGR that year. In size of their activities. 2010, 2011 and 2012, receipts under personal income tax (PAYE) was N104.68bn, Lagos’ total receipt under direct assessment - N120.25bn, N172.44bn respectively. Figures for was pegged at N6.62bn in 2016. In 2010, 2011 2018 remain outstanding and unclear. and 2012, revenue gotten under direct assessment was N7.51bn and N7.97bn On average, 64.8% of IGR for Lagos state respectively. came from PAYE between 2010 and 2016.
History: PAYE History: Direct Assessment collected
2010 104.68bn 2010 N7.51bn 2011 N120.25bn 2011 N7.97bn 2012 N172.44bn 2012 N/A 2013 N/A 2013 N1.89bn 2014 N153.61bn 2014 N9.39bn 2015 N175.43bn 2015 N9.197bn 2016 N190.66bn* 2016 N6.616bn* Source: NBS Source: NBS *Jan-June, 2016 *Jan-June, 2016
14 Road Tax Other Taxes
Road taxes are daily levies paid by commercial These include various taxe such as levies on transporters operating within Nigeria’s states. market traders, land registration and other land- related fees, as well as development levies on In Lagos, total receipt under Road Tax was individuals, pool betting/lottery/gaming fees approximately N9.54bn in 2016, accounting for and stamp duties on individuals. about 3.16% of total Internally-generated Revenue.
In 2010, 2011, 2012 and 2015 receipts from Road History: Other Taxes Tax was N7.51bn, N7.97bn, N4.36bn and N9.516bn respectively. 2010 N37.78bn
Preliminary reports from the Nigeria Bureau of 2011 N74.54bn Statistics show that revenue from Road tax in 2012 N40.51bn Lagos was N9.54bn, between January and June 2016. 2013 N/A 2014 N/A History: Road Tax Collection 2015 N74.08bn 2010 N7.51bn 2016 N21.56bn* 2011 N7.97bn *Jan-June, 2016 Source: Lagos State Government, BudgIT Research 2012 N4.36bn 2013 N/A 2014 N4.58bn 2015 N9.52bn 2016 N9.54bn*
*Jan-June, 2016 Source: Lagos State Government, BudgIT Research
15 Federal Transfers Under FAAC
The States received about N89.69bn in 2017 from the federation account, facilitated via the Federal Account Allocation Committee (FAAC). In 2014, 2015 and 2016, the total amount received from FAAC came in at N105.57bn, N82.91bn, N76.77bn respectively.
The composition of federal transfers includes revenue from company income tax, tariffs on import, Value Added Tax and revenue for the oil sector.
History: Net FAAC Allocations
2007 N48.62bn
2008 71.35bn
2009 N75.0bn
2010 N87.89bn
2011 N111.66bn
2012 N118.59bn
2013 N117.72bn
2014 N105.57bn
2015 N82.91bn
2016 N76.78bn
2017 N89.69bn 2018 \ N177bn* *Budget Projection Source: Office of the Attorney General of the Federation (OAGF); BudgIT Research 16 Breakdown
Value Added Tax due to structural and policy challenges.
Value Added Tax (VAT) was introduced in With regards to VAT figures, Lagos State France in 1968; since then, over 150 countries received approximately N80.23bn in 2017. worldwide have adopted some form of VAT. For 2015 and 2016, Lagos received a total of On average, countries from the Organisation N65.8bn and N75.43bn respectively. for Economic Co-operation and Development (OECD) cohort collect about 32% of their total History: Value Added Tax revenue from VAT and 27% from personal income taxes. This relatively new tax has 2007 N22.64bn become a crucial revenue source among N32.17bn OECD-member countries. 2008 2009 N39.96bn Nigeria is projecting a VAT uptake of N207.86bn in fiscal year 2018; but the federal 2010 N47.29bn government's share of VAT revenue was 2011 N51.02bn N106.74bn and N104.66bn in 2014 and 2015 respectively. Clearly, expectations for revenue 2012 N61.39bn collection numbers appear to be way beyond the actual reality, in terms of what the 2013 N68.84bn government receives. 2014 N72.62bn On one hand, revenue from VAT seems to be 2015 N65.82bn growing, despite Nigeria recently crawling out of economic recession. However, the 2016 N75.44bn perception in the wider economy is that 2017 N80.23bn Household Consumption expenditure is declining, with salaries paid out to employees 2018 N103.2bn* also plumbing lower depths, while the economy's capacity to create jobs is strained, *Budget Projection Source: Office of the Attorney General of the Federation (OAGF), Lagos State Government, BudgIT Research Statutory Revenue becomes Statutory revenue, which is then shared among the federal, state and local Statutory revenue allocation to Lagos state in governments, using a composite sharing 2017 was approximately N43.19bn; a rise of formular. 27.5%, from N33.87bn in 2016. Lagos state is entitled to some share of oil In 2015, 2014 and 2013, Statutory revenue was revenue, company income tax, revenue from N45.03bn, N59.85bn and N70.94bn tariff on incomes and other categories of respectively. revenue that are federally-collected and allocated, at the monthly FAAC meetings. Statutory revenue for any State is the money it is entitled to from the Federation Account. Oil revenue, Company income tax , Customs- related revenue (excluding VAT) are paid directly into the Federation Account.
History of Statutory Revenue
2007 N35.76bn 2008 N47.99bn 2009 N37.64bn 2010 N48.21bn 2011 N69.86bn 2012 N66.99bn 2013 N70.94bn 2014 N59.85bn 2015 N45.03bn 2016 N33.87bn 2017 N43.19bn 2018 N57.5bn* Source: OAGF, Lagos State Government *Budget Projection After a deduction of 13% of the revenue accruing to the Federation Account directly from any natural resources, what is left
18 Why is Lagos' FAAC Reducing? Why is Lagos' FAAC Reducing?
Bonds issued by Nigerian States are usually Lagos' allocation. However, Total deductions assisted by Irrevocable Standing Payment from the state's FAAC account in 2017 rose to Orders (ISPOs), which legally empower the N33.73bn, from 2016 deductions worth Accountant General of the Federation (AGF) N32.54bn. In 2015, 2014 and 2013, a total of to withdraw sums due to debt holders directly N27.95bn, N26.9bn and N22.06bn was from State governments' revenue accounts deducted from Lagos' FAAC allocation with the federal government, including interest respectively, reinforcing the State's increasing and capital repayments. debt profile.
Also, almost all external debt have some form History: Deductions from Lagos' FAAC Allocations of ISPOs, which enables the federal 2007 N9.78bn government to deduct interest and capital repayments as due, on behalf of the States. 2008 N8.80bn Lagos has been issuing bonds and increasing its stock of external debt, with its Domestic 2009 N2.59bn debt leaping from N157.34bn in 2011, to 2010 N7.60bn N311.76bn in 2016; figures for 2017 are unavailable. 2011 N9.22bn
External debt has also grown from 2011 figures 2012 N9.79bn of $400.5mn, to $1.45bn in 2017. The 2013 N22.06bn implication is that the federal government is making deductions to ensure Lagos meets its 2014 N26.90bn debt obligations. These deductions at source have therefore resulted in a reduction in the 2015 N27.95bn total revenue Lagos gets via the FAAC 2016 N32.54bn allocations. 2017 N33.73bn In 2007, only N9.78bn was deducted from Source: OAGF, Budget Research Debt Debt DEBT Domestic Debt Profile External Debt
Lagos has the highest domestic debt profile Between 2012 and 2014, Lagos' external debt among all 36 States in Nigeria; Total debt was rose by 89.85%, from $611m, to $1.16bn. The N311bn, as at year-end 2016. Debt in 2015, 2014 State's total external debt in 2015 and 2016 was and 2013 amounted to N218.54bn, N268.07bn, at $1.2bn and $1.17bn respectively. Lagos State N278.87bn respectively. has the highest foreign debt profile among its equals, followed by Kaduna, Edo and Cross River States. History: Domestic Debt Profile History: External Debt Profile
2011 N157.54bn 2011 $491.85m 2012 N230.43bn 2012 $611.25m 2013 N278.87bn 2013 $938.14m 2014 N268.07bn 2014 $1.17bn 2015 N218.54bn 2015 $1.21bn 2016 N311.76bn 2016 $1.38bn 2017 N363.29bn 2017 $1.47bn
Source: DMO, CBN, Budget Research Source: Debt Management Office (DMO), CBN, Budget Research Expenditure Personnel Costs History: Actual Personnel Costs
Lagos spent approximately N91bn in 2015, or 22.89% of Total expenditure, on the salaries 1998 N8.5bn and remuneration of its civil workers; up from 1999 N9.4bn N78.8bn in 2014 and N75.6bn in 2013. 2000 N12.9bn Between 2005 and 2015, these personnel 2001 N13.9bn costs for Lagos grew by 386.7%. 2002 N15bn Actual spending on personnel costs for 2016 2003 N14.5bn and 2017 are as yet unavailable. 2004 N16.5bn 2005 N18.7bn 2006 N21.2bn 2007 N30.5bn 2008 N40.5bn 2009 N42.8bn 2010 N57.7bn 2011 N66.4bn 2012 N62.4bn 2013 N75.6bn 2014 N78.8bn 2015 N91bn 2016 N125.2bn* 2017 N104.7bn* 2018 N112.2bn*
*Budget Projection Source: Lagos State Government; BudgIT Research
24 Public Debt Servicing History: Public Debt Servicing The cost of servicing debt taken on by the 1998 N400m Lagos government, relative to its revenue, is more or less flat. 1999 N200m 2000 N300m About 12.9% of Lagos' revenue was spent servicing outstanding debt in 2015; public debt 2001 N7.3bn servicing costs have risen from N4.5bn in 2002 N2.6bn 2009, to N35.9bn in 2018. 2003 N8.8bn Public debt servicing costs came to N22.9bn, N17bn, N33.2bn and N1.9bn in 2014, 2013, 2012 2004 N12.2bn and 2011 respectively. Actual cost of servicing 2005 N14bn outstanding debts for Lagos state in 2016 and 2017 remains unclear, due to the State 2006 N13.3bn n e g l e c t i n g t o p u b l i s h i t s b u d g e t 2007 N28.2bn implementation reports. 2008 N20.9bn 2009 N4.5bn 2010 N5.2bn 2011 N1.9bn 2012 N33.2bn 2013 N17bn 2014 N22.9bn 2015 N20.8bn 2016 N13.2bn* 2017 N30.9bn* 2018 N35.9bn*
Source: Lagos State Government; BudgIT Research *Budget Projection Overhead costs and Subvention History: Overhead costs and subvention Available data suggests the Overhead costs of maintaining Lagos' government has somewhat 2001 N14.3bn exhibited a downward trend, from 2014 levels of N104.1bn to N96.9bn in 2015. 2002 N15.8bn Lagos spent N105.1bn, N138.2bn, N80.8bn and N83.2bn on Overheads in 2013, 2012, 2011 and 2003 N15.3bn 2010 respectively, while figures for 2016 and 2017 are unknown. Furthermore, the 2004 N20.2bn breakdown of Lagos’ 2018 overhead cost projections is not publicly available. 2005 N26.8bn Essentially, what the State plans to spend on stationery and computer consumables, 2006 N47.6bn newspapers and periodicals, international and domestic travels, utility bills and general 2007 N49.3bn maintenance remains secret. 2008 N45.2bn
2009 N73.5bn
2010 N83.2bn
2011 N80.8bn
2012 N138.2bn
2013 N105.1bn
2014 N104.1bn
2015 N96.9bn
2016 N103.7bn*
2017 N170.4bn*
2018 N198.9bn*
Source: Lagos State Government; BudgIT Research *Budget Projection 26 Capital Expenditure History: Capital Spending
The Capital expenditure portion of Lagos' 1998 N5.7bn 2015 spendings was N160bn; a N5bn increase over 2014 capital spending, which accounted 1999 N3.3bn for 40.24% of Actual spending. 2000 N8.1bn Capital spending in 2013, 2012, 2011 and 2010 2001 N3.9bn was N274.6bn, N268.5bn, N230.8bn and N245.2bn respectively. Information on the 2002 N6.1bn 2016 and 2017 budget implementation report is 2003 N8.5bn not available, and the breakdown of the State's 2018 budget remains excluded from public 2004 N9.7bn knowledge. 2005 N19.2bn Preliminary information released to the public 2006 N50.1bn on Lagos' 2018 budget included proposed spending on projects such as the construction 2007 N78.4bn of the Agege Pen Cinema flyover; construction on alternative routes through 2008 N155.2bn Oke-Ira in Eti-Osa to Epe-Lekki Expressway; 2009 N235.7bn the construction of an 8km Regional Road to serve as alternative route to connect Victoria 2010 N245.2bn Garden City (VGC) with Freedom Road in 2011 N230.8bn Lekki Phase 1; the completion of the ongoing reconstruction of Oshodi International Airport 2012 N268.5bn Road into a 10-lane road and the construction of a BRT Lane from Oshodi to Abule-Egba. 2013 N274.6bn 2014 N165bn 2015 N160bn 2016 / N386.9bn* 2017 / N507.8bn* 2018 / N699.1bn* Source: Lagos State Government; BudgIT Research *Budget Projection
27 History: Capital Expenditure as a Transportation Percentage of Total Spending
Statistics 1998 28.06% 1999 17.46% 2000 30.92% 2001 9.90% 2002 15.44% 2003 18.05% LAGBUS 2004 16.55% 1309 2005 24.40% 2006 37.90% 2007 42.06bn 2008 59.28% 2009 66.12% Passengers 2010 62.66% 62,387,434 2011 60.75% 2012 53.45% 2013 58.14% 2014 40.79% 2015 40.42% Source: Lagos State Government, BudgIT Research
Routes 57
28 Conclusion
From the foregoing, the unequivocal, recurring b u d g e t d o c u m e n t s a n d b u d g e t theme is that Lagos State's finances and implementation reports, away from the public specifically its utilisation and spending of is widely regarded as an attempt to nurture and taxpayers funds remain mainly opaque, foster a corrupt system for the benefit of the uncoordinated, and brazen. The government ruling elite and their cronies. has persistently shown an inability to acknowledge the presence or wishes of the Over the last decade, Lagos State's accounts same Lagosians in whose names these have taken on a worrisome trend; the amount monies are disbursed and collected. of public funds being handled has grown, but so has secrecy and an outright refusal to This situation is exacerbated by the non- adhere to the basic tenets of democracy that capacity of the Lagos Assembly to encourage state the public has a right to know. or enforce conditions that mandate the Lagos state government to articulate its policies, With over N3.8tn spent by Lagos State present a detailed budget and/or submit governments between 1999 and 2015 amid standardised performance measurement little or no documentation and verifiable trails indicators. Lawmakers have presided over a backing such spendings, we use this medium sustained culture where governors appear to to call for a holistic audit of the State's sit back and routinely award contracts without finances. accountability. We urge the Lagos government to submit to A wanton disregard for the sanctity of public the fundamental principles of democracy, funds in Nigeria's richest state by total which include publishing key budget government revenue means that even when documents, including the detailed proposed tax revenues climb to all-time highs and budget for Lagos State, the enacted budget, outgrow agreed benchmarks, Lagos will budget implementation reports, financial rather continue to agitate for more tax, statements for Lagos, and the Audit reports. It drawdown on previous savings, or resort to is equally necessary for Lagos to publish all heavy debts accumulation - debts which will contract agreements entered into and carried be paid in years to come by children currently over within each relevant financial year. under the age of five. We reiterate that it is important for taxpayers, Worldwide, transparency is increasingly civil society organisations, development viewed by leaders and the led as central to partners, international organisation to take curbing corruption and other dysfunctions note and be aware. Lagos is increasingly within developing countries. normalising opacity in governance, despite being a prominent State; a development that A deliberate attempt by any government to could set dire precedents for other States, and keep key information, including its detailed contribute to a devastating retardation of Nigeria's hard-won democracy.
29 www.yourbudgit.com Simplifying the Nigerian Budget
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